Johnson & Johnson Gains Drugmaker Momenta in $6.5B Deal

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Johnson & Johnson (JNJ) - Get Report said Wednesday that it will buy Momenta Pharmaceuticals (MNTA) - Get Report for $6.5 billion in cash, paving the way for the company to expand its efforts into autoimmune disease treatments.

J&J will pay $52.50 for each Momenta share, a 70.4% premium to Momenta's closing price Tuesday. Shares of Momenta surged on the announcement, gaining nearly 70%, or $21.39 a share, to $52.20 in premarket trading.

Momenta will become part of J&J’s Janssen Pharmaceutical unit, the companies said, with Janssen acquiring Momenta’s pipeline of clinical assets. Janssen plans to retain Momenta's presence in Cambridge, Massachusetts.

Momenta focuses on treating rare autoantibody-driven diseases including Myasthenia Gravis, Hemolytic Diseases of the Fetus and Newborn, warm Autoimmune Hemolytic Anemia. With an autoantibody-driven disease, the body's antibodies attack or damage its own proteins, cells and tissues, often with devastating consequences.

The deal is expected to close in the second half of 2020. While the deal is expected to have a per-share impact of approximately 10 to 15 cents in 2021, J&J said costs related to the development of Momenta’s portfolio are expected to be “incremental.” 

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